Archer Daniels Midland Company (NYSE:ADM) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Archer Daniels Midland Company (NYSE:ADM) have been assigned an average recommendation of “Reduce” from the nine research firms that are presently covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $57.00.

ADM has been the subject of several recent research reports. Zacks Research raised Archer Daniels Midland from a “strong sell” rating to a “hold” rating in a research note on Friday, January 23rd. Morgan Stanley lowered shares of Archer Daniels Midland from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $57.00 to $50.00 in a report on Tuesday, December 16th. BMO Capital Markets reissued a “market perform” rating and issued a $63.00 price target on shares of Archer Daniels Midland in a research note on Wednesday, February 4th. UBS Group restated a “buy” rating on shares of Archer Daniels Midland in a research report on Monday, December 15th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Archer Daniels Midland in a report on Wednesday, January 21st.

Archer Daniels Midland Trading Up 0.0%

Shares of Archer Daniels Midland stock opened at $69.52 on Tuesday. Archer Daniels Midland has a twelve month low of $40.98 and a twelve month high of $70.09. The firm’s 50-day moving average price is $63.01 and its 200 day moving average price is $61.30. The company has a current ratio of 11.20, a quick ratio of 0.92 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $33.41 billion, a PE ratio of 31.32, a P/E/G ratio of 0.93 and a beta of 0.71.

Archer Daniels Midland (NYSE:ADM) last announced its earnings results on Tuesday, February 3rd. The company reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.07. The business had revenue of $18.56 billion during the quarter, compared to analysts’ expectations of $21.03 billion. Archer Daniels Midland had a return on equity of 7.39% and a net margin of 1.34%.The business’s revenue was down 13.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.14 earnings per share. Archer Daniels Midland has set its FY 2026 guidance at 3.600-4.250 EPS. On average, sell-side analysts predict that Archer Daniels Midland will post 4.31 EPS for the current fiscal year.

Archer Daniels Midland Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 17th will be issued a $0.52 dividend. This is a boost from Archer Daniels Midland’s previous quarterly dividend of $0.51. This represents a $2.08 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, February 17th. Archer Daniels Midland’s payout ratio is 91.89%.

Insiders Place Their Bets

In related news, Director David R. Mcatee II bought 7,500 shares of the company’s stock in a transaction on Thursday, February 5th. The stock was bought at an average cost of $64.90 per share, for a total transaction of $486,750.00. Following the acquisition, the director directly owned 7,500 shares in the company, valued at $486,750. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 0.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Toth Financial Advisory Corp purchased a new stake in shares of Archer Daniels Midland in the fourth quarter valued at about $25,000. Motiv8 Investments LLC acquired a new position in Archer Daniels Midland in the 4th quarter valued at about $26,000. Trust Co. of Vermont grew its stake in shares of Archer Daniels Midland by 367.0% in the 3rd quarter. Trust Co. of Vermont now owns 509 shares of the company’s stock valued at $30,000 after buying an additional 400 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in shares of Archer Daniels Midland by 313.8% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 509 shares of the company’s stock worth $30,000 after buying an additional 386 shares during the last quarter. Finally, Elyxium Wealth LLC purchased a new stake in shares of Archer Daniels Midland during the 4th quarter valued at approximately $31,000. Institutional investors and hedge funds own 78.28% of the company’s stock.

Archer Daniels Midland Company Profile

Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.

ADM’s business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.